In many states, there is a term “blue title” that indicates a vehicle with a salvage title. But in some states- Texas to be exact- a blue title is considered a “clean and clear” vehicle title.
In general terms, the phrase “blue title” is derived from the fact that the document that the paper the title is printed on is blue. In lots of states, blue signifies a salvage title. In other states, a salvage title can be printed on pink paper. Other states will print a clear title on green paper. There is even orange paper used for car titles in additional states. All papers are state-approved and cannot be duplicated. For any kind of vehicle title you need, it’s best to check with your local car title office or your local DMV.
Is a Blue Title Bad?
There’s nothing bad about a blue title in Texas. In fact, a blue title in Texas and in most states is a “clear” title. It also is a title that indicates that any vehicle issued this kind of title is safe to drive. But a blue title in other states means that the car is a “salvage” car that has been in some sort of accident, or has endured some sort of disaster. You want to check with your state to get a clear definition of a blue title.
What’s A Blue Title in Texas Mean?
A blue title in the state of Texas is also a clear title. A vehicle that has blue title also has a clear title. The vehicle is safe to drive. A blue title in Texas also indicates that the vehicle has never been in a collision, an accident or has been damaged to the extent that a car insurance company has declared the vehicle
inoperable. In the state of Texas, a salvage title is a title printed on purple paper. Additionally, in Texas, a salvage vehicle is a vehicle that has missing parts, extensive damage or will cost more to repair, than its actual worth. Click here to learn more about how to sell a car in Texas.
How To Clear A Blue Title or a Salvage Title
In most states a “blue title” is a vehicle that has a salvage title. This means that a car insurance company has deemed the vehicle damaged and a total loss. The car has either been in an accident, a collision or endured tremendous fire or flood damage.
But just because the car has a blue title or a salvage title, it does not mean that car is beyond repairs. It just means that the car insurance company feels that repairing the car, may not be best.
But as long as the title is sporting a salvage title, generally, the car cannot be insured by a car insurance company. Additionally, the vehicle cannot be legally driven on the road. And in terms of finding a bank that will finance a vehicle with a salvage title, it will be nothing short of a miracle. So, can it be possible to clear a salvaged title? The short answer to that question: no. But what you are able to do, is to obtain a title as rebranded or rebuilt. This means that the vehicle is legally allowed to be on the road and can be insured.
The following steps can guide you to getting that car back on the road:
- First, purchase the vehicle.
- Second, repair the vehicle and fix whatever is causing it to be labeled as “salvage”.
- Thirdly, go to a certified auto center and obtain an inspection the vehicle. This will vary by state. So, ask your local auto repair shop what avenues you need to take, to get this done. Auto repair professionals are great helpers with this.
- Fill out and complete all required paperwork that your local/state DMV or car title office requires. Take your time filling it out- so that you don’t have to fill it out a second time.
If all goes well, your state will provide you with a new title that is labeled “rebuilt”. It’s important to keep in mind is that insurance companies and potential buyers will immediately realize that a car that has a rebuilt title. So, you may not find a buyer or car coverage fast enough for your needs.
Furthermore, this rebuilt title does not come close to a car with a clean title. You may encounter a car insurance company that will offer no coverage to you, due to your rebuilt title. But there are some car insurance companies that will indeed insure this kind of car. You just have to do a bit more work to find them. Another aspect to consider: if your car was declared “salvage” in another state, then you may have to get that car inspected in that state before your own state will allow you to registered the vehicle there.
Things To Think About when Buying A Salvage Vehicle
So, you have your eye on a salvage vehicle. There are some things you want to consider before buying it.
Can Your Car Be Financed?
If you are not paying cash for the salvage vehicle you want, you have to ask yourself if you are able to obtain financing for it. For the purchase a salvage vehicle you’re going to need cash. Why? Many banks and other lenders are quite leery of giving money to car that has already endured tremendous trauma and disaster.
What About Car Insurance?
If you’re looking to insure a car that has been deemed “salvage” then you may have car insurance companies turn their noses up at you and deny you any kind of coverage. But if you are lucky enough to have an insurance company offer you coverage, there may be some stipulations. For example, you may
find that the insurance company may reduce the claim amounts should your vehicle ever be in any kind of accident. Every state has its own set of requirements. So, it’s to your advantage to investigate before buying that salvage car.
Will You Be Able To Resale The Car?
OK-so, you bought the car and now you want to resell the car. How are you going to do that? You can put an ad up on the Internet or you can post some pictures of the car on Facebook. Just don’t count on too many folks flocking to call you. Because a salvage car is not a seen as a prize by many. Sure, there are car enthusiasts and mechanics who may see the car and buy it for its parts. But for someone looking for a quality car, don’t bank on your salvage vehicle, being the vehicle for them- even if you restore the vehicle to look like something out of a car showroom.
Advantages and Disadvantages to Buying a Salvage Title Car
Just as with any purchase, buying a salvage title car does have its pros and cons. So, what are they?
Pros of Buying a Salvage Title Car
- Reduced Cost– Salvage title vehicles are generally sold for just a fraction of the cost of the same kind of vehicle that has not been involved in a collision or a major accident. Oftentimes, you can find a salvage title car at a local car auction or salvage yard.
- Not Much Damage– You may come across a car that has been deemed “salvage”, but it is not in too bad of shape. Sure, lots of vehicles are damaged beyond any reasonable fix or repair. But some cars may not need too much repair. Additionally, salvage car owners may be able to discuss a car insurance rate for the vehicle. It is to your benefit to ask so that you have adequate coverage for your car.
Cons of Buying A Salvage Title Car
- Hidden Damage– When a car has been in an accident, there is damage that is so obvious and then there is damage that cannot be seen. With a car that has a salvage title, that car may have endured frame damage that can prevent it from being repaired.
- Unable to Pass Safety Inspection– Many times, a vehicle that has a salvage title, cannot pass inspection in certain states. So, before you buy that car, check to see if it can pass inspection first.
- That Salvage Title is Forever– Finally, when your car has been given a salvage/blue title, that title will stay with the car forever-despite your best efforts to make it beautiful and get it running. You or a mechanic may be able to restore that prized vehicle to 100%. But the salvage title of the vehicle will always be there.
Need To Sell A Blue Title/Salvage Title Car?
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